What happened on the FTX exchange has also deeply affected the general cryptocurrency market. Besides Bitcoin, FTX’s cryptocurrency FTT, one of the coins most affected by the situation was Solana (SOL). Here are the details…
FTX events negatively impacted Solana
During the mid-market dispute, Solana price fell 30 percent to below $20. The coin dropped from $30.62 to $19.90. Koindeks.com As we have also reported, since the emergence of the Alameda and FTX crisis last week; The price of SOL has dropped by a surprising 50 percent in the last five days. So why are Alameda and FTX affecting Solana (SOL)?
According to reports, Sam Bankman-Fried bought SOL for $1.2 billion through Alameda. Reports argue that Alameda has sold SOL assets. It shows that with the proceeds from the sale, he bought FTT to contain the fall in the price of the FTX token. In addition, the recent developments regarding the acquisition of FTX by Binance also affected the market.
Binance CEO Changpeng Zhao controls 10 percent of the tokens. Therefore, investors seem to think it would be more appropriate to support BNB Chain instead of Solana. Sam Bankman-Fried was one of Solana’s biggest supporters. However, while their companies are under deep water, some argue that this reinforcement will not last.
A large whale sells SOL
According to the ten chain data, a Solana whale liquidated SOL. This is thought to be one of the biggest factors that lowered the SOL price. Blockchain journalist Colin Wu uses the following terms based on Solend.fi information:
The Solana whale (3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE) is in liquidation and currently has 2,450,418.5 SOL (over $51M) and USDC 44,871,609.6 in debt. However, Solana is currently facing bottleneck due to oracle update.
It is not certain how far this epidemic can spread and how many more SOLs will be sold on the open market. Earlier this year, investors experienced a similar liquidation with LUNA. The spread of panic amid individual and institutional investors could make the market more negative. There could be more bearish in Solana and the wider crypto space. Currently, SOL is seeing progress, down 90 percent year-on-year.
Liquidations continue at FTT
Meanwhile, $850 million worth of positions were liquidated due to the latest market movements. Due to the developments in the middle of FTX and Binance, the cases of traders who opened a long position were closed. During the mid-market dispute, the price of FTT fell 38.7 percent from $25.71 to $15.76. Subsequently, the decline continued with the coin dipping below $10. Currently, FTT is changing hands at $4.55, down 75 percent.